Energy Smart Stories
Energy market stories covering oil prices, commodities, and the forces shaping global energy markets.
The -$37 Barrel: Why Oil Sellers Paid Buyers to Take Their Oil
Energy • Oil • Commodities • Futures • COVID-19
April 20, 2020: WTI crude futures fell to -$37 per barrel. First negative price in 37 years of trading. COVID crushed demand by 30%. Cushing, Oklahoma hit 83% storage capacity. Speculators holding paper oil had nowhere to put the real thing. They paid buyers to take it.
WTI hit -$37 while Brent stayed at +$19.33. Same commodity. Different contract. One requires physical delivery in Cushing, Oklahoma. When storage hit 83% and demand fell 30%, paper traders paid to escape. Every futures contract has a delivery mechanism. Know yours.